During this time of crisis, the numerator of the valuation equation needs much more attention than before, said a panel during yesterday’s free BVR webinar. While the effort should always have tipped in favor of cash flow and forecasts over the cost of capital, we’re hearing that some are now using an 80-20 mix, i.e., spending 80% of their time on the numerator and 20% on the denominator for valuations.

Stacy Preston Collins (Financial Research Associates), Michelle Gallagher (Adamy Valuations), Harold Martin (Keiter, Stephens, Hurst, Gary & Shreaves PC), and Gary Trugman (Trugman Valuation) presented the free 100-minute webinar, Extreme Uncertainty: How Valuation Experts Should Respond to Today’s Volatility and Risk. The panel answered many questions from the audience on topics including year-end 2019 valuations, what was known or knowable, the CARES Act, impact on the three valuation approaches, cost of capital, family law considerations, and more. A free replay of the webinar will be available shortly.